Independent Contractor Reporting
Businesses and government entities (defined as a "service-recipient") are required to report specific information to the Employment Development Department (EDD) on independent contractors (defined as a "service-provider"). The information provided is used to locate parents who are delinquent in their child support obligations.
You are required to report independent contractor information if you pay compensation or enter into a contract with an independent contractor and the following statements all apply:
- You are required to file a federal Nonemployee Compensation (Form 1099-NEC) or a Miscellaneous Information (Form 1099-MISC) for the services performed by the independent contractor.
- You pay the independent contractor $600 or more or enter into a contract for $600 or more.
- The independent contractor is an individual/sole proprietor or single-member LLC.
You must report independent contractor information to the EDD within 20 days of either making payments totaling $600 or more or entering into a contract for $600 or more with an independent contractor in any calendar year, whichever is earlier. Businesses that transmit electronically must submit 2 monthly reports that are not less than 12 days and not more than 16 days apart. Independent contractors should only be reported once per calendar year for any new or ongoing contracts. No report should be submitted if there are no independent contractors to report.
You are required to provide the following information:
Service-recipient (business or government entity):
- Federal Employer Identification Number (FEIN)
- California employer payroll tax account number (if applicable)
- Social Security number (SSN)
- Service-recipient name/business name, address, and phone number
Service-provider (independent contractor):
- First name, middle initial, and last name
- Social Security number
- Start date of contract (if no contract, date payments equal $600 or more)
- Amount of contract, including cents (if applicable)
- Contract expiration date (if applicable)
- Ongoing contract (check box if applicable)
Use e-Services for Business to submit a Report of Independent Contractor(s) (DE 542).
Mail or Fax
Submit a paper report of independent contractors using one of the following options:
- Download a fill-in DE 542 (PDF) form.
- Order the DE 542 form from our Online Forms and Publications.
- Use the DE 542 Print Specifications (PDF) to generate an alternate form.
- Call the Taxpayer Assistance Center at 1-888-745-3886 to obtain a form.
- Create your own form with all of the required information.
- Visit your nearest Employment Tax Office to pick up a form.
Employment Development Department
PO Box 997350, MIC 96
Sacramento, CA 95899-7350
A service-recipient may be charged a penalty of $24 for each failure to report within the required time frames, unless the failure is due to good cause. If the failure to report is intentional or if the report is falsified, a penalty of $490 may be charged.
- FAQs - California Independent Contractor Reporting
- Form 1099-NEC or 1099-MISC IRS Filing Requirements
- FTB Nonresident Withholding Process
- What Is the Difference Between a Common Law Employee and an Independent Contractor?
- Employment Determination Guide (DE 38)(PDF)
- Independent Contractors Misconceptions Brochure (DE 573M)(PDF)
- Call the Taxpayer Assistance Center at 1-888-745-3886